Use the Following Information to Answer the Question(s)below

question 18

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2011,Pamplin Corporation stockholders' equity consisted of $1,000,000 of $10 par value Common Stock,$750,000 of Additional Paid-in Capital,and $3,000,000 of Retained Earnings.On January 1,2011,Pamplin purchased 90% of the outstanding common stock of Sage Corporation for $1,500,000 with all excess purchase cost assigned to goodwill.The stockholders' equity of Sage on this date consisted of $800,000 of $100 par value,8% cumulative,preferred stock callable at $105,$900,000 of $10 par value common stock and $500,000 of Retained Earnings.Sage's net income for 2011 was $100,000.
On January 1,2011,no preferred dividends are in arrears.No dividends are declared or paid in 2011.In a separate transaction on January 1,2011,Pamplin purchased 70% of Sage's preferred stock for $600,000.
-What is the goodwill on the consolidated balance sheet for Pamplin and Subsidiaries on December 31,2011 based on Pamplin's purchase of Sage's common stock?

• A)$140,000
• B)$240,000
• C)$290,000
• D)$306,667

---

Definitions:

Race

A social construct that categorizes people based on physical characteristics, such as skin color, facial features, and hair texture.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Unequal Treatment

The unfair and differential treatment of individuals or groups based on characteristics such as race, gender, age, or social status, often leading to discrimination and prejudice.

Racial Group

A social category of people who share distinct physical or genetic traits deemed significant by society.